Group 1 - Plains All American is focused on the midstream oil and gas transportation business, operating pipelines in both Canada and the United States [1] - The company aims to identify value opportunities in sectors like oil and gas, metals, and mining, particularly in emerging markets [1] - Plains All American emphasizes the importance of sustained free cash flows, low leverage, and a pro-shareholder attitude through buyback programs and dividend distributions [1] Group 2 - The article highlights the significance of analyzing companies that are not widely considered by the market, which may present good investment opportunities [1] - The focus is on companies with high margins and recovery potential, especially those undergoing distress [1] - The author expresses a commitment to sharing valuable information with the investment community to aid individual decision-making [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The author has over 14 years of investment experience and an MBA in Finance, focusing on defensive stocks with a medium- to long-term investment horizon [2]

Group 1 - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock has been a focus [1] Group 2 - Roberts Berzins is a CFA Charterholder and holds an ESG investing certificate, indicating a strong background in investment analysis and sustainable finance [1] - Active involvement in "thought-leadership" activities supports the development of pan-Baltic capital markets, showcasing a commitment to industry advancement [1]

Core Viewpoint - The Zacks Oil and Gas - Pipeline MLP industry faces an uncertain outlook due to conservative capital expenditures by upstream companies and a significant debt burden impacting midstream energy companies' ability to fund new projects and withstand economic downturns [1][4]. Industry Overview - The Zacks Oil and Gas - Pipeline MLP industry consists of master limited partnerships that transport oil, natural gas, refined petroleum products, and natural gas liquids in North America, generating stable fee-based revenues from transportation and storage services [3]. - The industry is capital-intensive, with a debt-to-capitalization ratio of 55%, which can limit financial flexibility for midstream energy companies [4]. Current Challenges - A shift towards renewable energy is expected to reduce demand for oil and natural gas pipeline and storage networks, posing challenges for the industry [5]. - Oil and gas exploration companies are under pressure to prioritize shareholder returns over production growth, negatively impacting the demand for pipeline and storage assets [6]. Industry Ranking and Performance - The Zacks Oil and Gas - Pipeline MLP industry holds a Zacks Industry Rank of 162, placing it in the bottom 34% of over 250 Zacks industries, indicating weak near-term prospects [7][8]. - Despite the challenges, the industry has outperformed the broader Zacks Oil - Energy sector and the S&P 500, with a 17.5% increase over the past year compared to a 4.1% decline in the sector and a 12.4% increase in the S&P 500 [10]. Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 11.47X, lower than the S&P 500's 16.51X but significantly above the sector's 4.56X [14]. - Over the past five years, the industry's EV/EBITDA has ranged from a high of 12.88X to a low of 7.48X, with a median of 9.95X [14]. Key Companies - Enterprise Products Partners LP (EPD) has a diversified asset portfolio with over 50,000 miles of pipelines and a storage capacity of 300 million barrels, generating stable fee-based revenues [17]. - Energy Transfer LP (ET) operates a vast pipeline network across 125,000 miles, also generating stable fee-based revenues and expected to see earnings growth of 12.5% this year [21]. - Plains All American Pipeline (PAA) benefits from stable fee-based revenues and is projected to achieve top-line growth of 5.1% in 2025 [24].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________ FORM 10-Q ________________________________________________________________________________________________________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA attributable to Plains of $754 million for Q1 2025, with a crude oil segment adjusted EBITDA of $559 million impacted by winter weather and refinery downtime [6][12] - The NGL segment reported adjusted EBITDA of $189 million, benefiting from higher frac spreads and NGL sales volumes [12] Business Line Data and Key Metrics Changes - The NGL segment's transition to fee-based earnings continues, with a 30,000 barrel per day fractionation project placed into service [8] - The crude segment saw two strategic transactions, including the acquisition of the remaining 50% equity in the Cheyenne Pipeline and the acquisition of Black Knight Midstream for approximately $55 million [9][10] Market Data and Key Metrics Changes - The ongoing uncertainty regarding trade tariffs and OPEC member dissension has created significant market volatility, impacting economic forecasts [6][7] - The company expects a $60 to $65 WTI price environment for the remainder of the year, which may lead to lower EBITDA guidance and Permian growth outlook [7] Company Strategy and Development Direction - The company remains focused on efficient growth strategies, generating significant free cash flow, and maintaining a flexible balance sheet [8][14] - The company has successfully deployed approximately $1.3 billion into bolt-on acquisitions over the last several years, indicating a commitment to capital discipline and attractive risk-adjusted returns [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current market volatility but believes it reinforces the cyclical nature of commodity markets, leading to a constructive medium to long-term outlook [7][39] - The company expects to generate strong cash flow in 2025, with adjusted free cash flow projected at about $1.1 billion [13] Other Important Information - The company has hedged approximately 80% of its estimated C3 plus spec products sales for 2025, providing insulation from lower commodity prices [8] - The company is committed to returning capital to unitholders while maintaining a strong balance sheet and financial flexibility [14][76] Q&A Session Summary Question: Capital allocation in the current environment - Management remains committed to distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases [20] Question: M&A landscape and volatility impact - Volatile markets create questions, but the company is well-positioned to pursue attractive deals while maintaining capital discipline [22] Question: Earnings cadence in Canada post-expansion - The expanded capacity at the PFS facility will ramp up over the remainder of the year and into next year [26] Question: Details on the Black Knight Midstream acquisition - The acquisition is strategically located in the Northern Midland Basin and complements the company's existing asset base [30] Question: Outlook on Permian volumes - The company has already grown over 100,000 barrels a day and maintains a growth expectation of 200,000 to 300,000 barrels per day [35] Question: Acquisition multiples for recent deals - Both recent acquisitions met the company's return thresholds and fit the model of previous successful transactions [41] Question: Capital expenditure guidance - The investment capital guidance for 2025 remains unchanged at $400 million net to Plains, with a focus on pacing capital with producer activity [46] Question: Hedging philosophy - The company maintains a consistent hedging strategy to ensure steady cash flow, with a focus on the front end of the market [49] Question: Sensitivity regarding Permian production - The guidance for Permian production is based on full-year expectations, with a focus on market dynamics influencing pricing [52] Question: Volume recovery in April and May - The recovery was driven by production coming back online after weather-related disruptions, with expectations for increased long-haul throughput [60] Question: Demand signals from refining and export sides - The global refining market remains healthy, with strong crack spreads, while export movements fluctuate based on pricing [72]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA attributable to Plains of $754 million for Q1 2025, with the crude oil segment adjusted EBITDA at $559 million, impacted by winter weather and refinery downtime [5][10] - The NGL segment reported adjusted EBITDA of $189 million, benefiting from higher frac spreads and NGL sales volumes [11] Business Line Data and Key Metrics Changes - The NGL segment's transition to more fee-based earnings continues, with a 30,000 barrel per day fractionation project placed into service [7] - The crude segment experienced two strategic transactions, including the acquisition of the remaining 50% equity in the Cheyenne Pipeline and the acquisition of Black Knight Midstream for approximately $55 million [8][10] Market Data and Key Metrics Changes - The company expects a $60 to $65 WTI price environment for the remainder of the year, which may lead to EBITDA guidance being in the lower half of the respective ranges [6] - The NGL segment remains largely insulated from lower commodity prices, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [7] Company Strategy and Development Direction - The company continues to execute on its efficient growth strategy, generating significant free cash flow and maintaining a flexible balance sheet [7][13] - The focus remains on distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases [21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty regarding trade tariffs and OPEC dynamics, which are creating volatility in the market [5][6] - The company remains optimistic about the medium to long-term outlook despite current market conditions, emphasizing the cyclical nature of commodity markets [6][39] Other Important Information - The company has successfully deployed approximately $1.3 billion into bolt-on acquisitions over the last several years, indicating a commitment to pursuing attractive risk-adjusted returns [9] - The management acknowledged the retirement of Harry Pofonis, the President and Co-Founder, recognizing his contributions to the company [9] Q&A Session Summary Question: Thoughts on capital allocation in the current environment - The company remains committed to distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases as a component of capital allocation [21][22] Question: M&A landscape and volatility impact - Volatile markets create questions, but the company believes it is well-positioned to pursue attractive deals while maintaining capital discipline [23][24] Question: Earnings cadence in Canada with new fractionation complex - The expanded capacity at the PFS facility in Edmonton will ramp up over the remainder of the year and into next year, contributing gradually to earnings [27][28] Question: Insights on Permian volumes and producer conversations - The company has seen over 100,000 barrels per day growth from the end of last year, with producers adopting a wait-and-see approach due to market volatility [35][36] Question: Acquisition multiples for recent deals - Both recent acquisitions met the company's return thresholds, with a focus on capital discipline and risk-adjusted returns [41][42] Question: Capital expenditure guidance and 2026 outlook - The investment capital guidance for 2025 remains unchanged at $400 million, with expectations for 2026 to align with long-term capital guidance [45][46] Question: Hedging philosophy and frac spread - The company maintains a consistent hedging strategy, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [47][48] Question: Demand signals and refining market health - The global refining market remains healthy, with strong crack spreads and refineries running at high capacity [71][73]

Core Insights - Plains All American Pipeline, L.P. (PAA) reported first-quarter 2025 adjusted earnings of 39 cents per unit, missing the Zacks Consensus Estimate of 45 cents by 13.3% [1] - Total revenues were $12.01 billion, falling short of the Zacks Consensus Estimate of $13.1 billion by 8.4%, but increased 0.1% from the previous year's $12 billion [2] Financial Performance - Total costs and expenses were $11.5 billion, a decrease of 1.3% year over year, attributed to increased purchases and related costs [3] - Net interest expenses rose to $127 million, up 33.7% from the prior-year quarter [3] Segment Performance - The Crude Oil segment's adjusted EBITDA was $559 million, up 1% from the year-ago quarter, driven by higher tariff volumes and contributions from recent acquisitions, offset by higher operating expenses [4] - Adjusted EBITDA for the NGL segment increased by 19% to $189 million, due to higher weighted average frac spreads and NGL sales volumes [5] Financial Update - As of March 31, 2025, cash and cash equivalents were $427 million, up from $348 million as of December 31, 2024 [6] - Long-term debt increased to $8.2 billion from $7.21 billion as of December 31, 2024, with long-term debt-to-total book capitalization rising to 46% from 42% [6] 2025 Guidance - For 2025, PAA expects adjusted EBITDA to be in the range of $2.80-$2.95 billion and adjusted free cash flow to be $1.095 billion [7] - The company plans disciplined capital investments, with growth capital and maintenance capital anticipated at $400 million and $240 million, respectively [7] Zacks Rank - PAA currently holds a Zacks Rank 3 (Hold) [8]

[Plains All American Reports First-Quarter 2025 Results](index=1&type=section&id=Plains%20All%20American%20Reports%20First-Quarter%202025%20Results) This section provides an overview of Plains All American's strong Q1 2025 financial and operational performance, highlighting key achievements, financial results, and segment-specific contributions [Overview and Business Highlights](index=1&type=section&id=Business%20Highlights) Plains All American reported strong Q1 2025 results with solid operational and financial performance, driven by its integrated Crude Oil and NGL businesses. The company highlighted significant cash flow generation, a strong balance sheet with a 3.3x leverage ratio, two bolt-on acquisitions, and the completion of a key fractionation project, while maintaining financial discipline and increasing its quarterly distribution by 20% year-over-year - CEO Willie Chiang emphasized the company's solid performance, substantial cash flow, strong balance sheet, and commitment to efficient growth and returning cash to unitholders amidst market volatility[4](index=4&type=chunk) - Key strategic and operational achievements in the quarter include: Acquired the remaining 50% interest in Cheyenne Pipeline to enhance integration from the Guernsey market to Cushing, Oklahoma; Acquired Black Knight Midstream's Permian Basin crude oil gathering business for approximately **$55 million**; Placed the **30 Mb/d** Fort Saskatchewan fractionation complex debottleneck project into service; Increased the 2025 C3+ spec product sales hedge profile to approximately **80%** at around **$0.70 per gallon**[5](index=5&type=chunk) Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Net Income attributable to PAA | $443 million | | Net Cash from Operating Activities | $639 million | | Adjusted EBITDA attributable to PAA | $754 million | | Leverage Ratio | 3.3x | | Quarterly Distribution per Unit | $0.38 ($1.52 annualized) | [Summary Financial Information (unaudited)](index=2&type=section&id=Summary%20Financial%20Information%20(unaudited)) The company reported significant year-over-year growth in GAAP results, with net income attributable to PAA increasing by 67% and net cash from operating activities rising by 53%. Non-GAAP results showed a 5% increase in Adjusted EBITDA attributable to PAA. Adjusted Free Cash Flow was negative, primarily due to a $624 million cash outflow for bolt-on acquisitions Q1 2025 vs Q1 2024 Financial Results (GAAP) | GAAP Results | Q1 2025 Value | Q1 2024 Value | % Change | | :--- | :--- | :--- | :--- | | Net income attributable to PAA | $443 million | $266 million | 67% | | Diluted net income per common unit | $0.49 | $0.29 | 69% | | Net cash provided by operating activities | $639 million | $419 million | 53% | | Distribution per common unit | $0.3800 | $0.3175 | 20% | Q1 2025 vs Q1 2024 Financial Results (Non-GAAP) | Non-GAAP Results | Q1 2025 Value | Q1 2024 Value | % Change | | :--- | :--- | :--- | :--- | | Adjusted net income attributable to PAA | $375 million | $354 million | 6% | | Diluted adjusted net income per common unit | $0.39 | $0.41 | (5)% | | Adjusted EBITDA attributable to PAA | $754 million | $718 million | 5% | | Adjusted Free Cash Flow | ($308 million) | $70 million | N/A | - The Q1 2025 period includes a net cash outflow of **$624 million** for bolt-on acquisitions, which significantly impacted Adjusted Free Cash Flow[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Summary%20of%20Selected%20Financial%20Data%20by%20Segment%20(unaudited)) The NGL segment was the primary driver of growth in Q1 2025, with a 19% increase in Segment Adjusted EBITDA due to higher frac spreads and sales volumes. The Crude Oil segment's performance was stable, with favorable results from higher tariff volumes and acquisitions being largely offset by increased operating expenses and refinery downtime Segment Adjusted EBITDA (in millions) | Segment | Q1 2025 (million) | Q1 2024 (million) | % Change | | :--- | :--- | :--- | :--- | | Crude Oil | $559 | $553 | 1% | | NGL | $189 | $159 | 19% | - Crude Oil Segment Adjusted EBITDA was nearly flat, as benefits from higher tariff volumes, tariff escalations, and bolt-on acquisitions were offset by higher operating expenses and the impact of refinery downtime[9](index=9&type=chunk) - NGL Segment Adjusted EBITDA increased by **19%** compared to the prior year, primarily due to higher weighted average frac spreads and NGL sales volumes[10](index=10&type=chunk) [Financial Statements and Data](index=5&type=section&id=FINANCIAL%20SUMMARY%20(unaudited)) This section presents Plains All American's consolidated financial statements, including detailed statements of operations, balance sheet data, cash flow information, and key operating metrics by segment for the first quarter of 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, PAA's revenues remained stable year-over-year at approximately $12.0 billion. However, due to lower costs, operating income increased significantly by 44% to $533 million, and net income attributable to PAA rose 67% to $443 million Condensed Consolidated Statements of Operations (in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | **REVENUES** | **$12,011** | **$11,995** | | Total costs and expenses | $11,478 | $11,625 | | **OPERATING INCOME** | **$533** | **$370** | | INCOME BEFORE TAX | $566 | $365 | | **NET INCOME** | **$516** | **$351** | | **NET INCOME ATTRIBUTABLE TO PAA** | **$443** | **$266** | | **Basic and diluted net income per common unit** | **$0.49** | **$0.29** | [Condensed Consolidated Balance Sheet Data](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20DATA) As of March 31, 2025, PAA's total assets increased to $27.1 billion from $26.6 billion at year-end 2024, primarily due to a rise in Property and equipment. Total debt also rose to $8.7 billion from $7.6 billion, leading to an increase in the total debt-to-total book capitalization ratio from 44% to 47% Condensed Consolidated Balance Sheet Data (in millions) | Metric | March 31, 2025 (million) | December 31, 2024 (million) | | :--- | :--- | :--- | | Total current assets | $4,735 | $4,802 | | Property and equipment, net | $16,062 | $15,424 | | **Total assets** | **$27,059** | **$26,562** | | Total current liabilities | $4,691 | $4,950 | | Senior notes, net | $8,131 | $7,141 | | **Total liabilities** | **$14,199** | **$13,466** | | **Total partners' capital** | **$12,860** | **$13,096** | | **Total liabilities and partners' capital** | **$27,059** | **$26,562** | Debt Capitalization Ratios | Metric (million) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt | $8,682 | $7,621 | | Long-term debt-to-total book capitalization | 46% | 42% | | Total debt-to-total book capitalization, including short-term debt | 47% | 44% | [Condensed Consolidated Cash Flow Data](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20CASH%20FLOW%20DATA) Net cash provided by operating activities increased by 53% to $639 million in Q1 2025. However, net cash used in investing activities surged to $1.15 billion, largely driven by $624 million in bolt-on acquisitions. Net cash from financing activities was a positive $590 million, resulting in a net increase in cash of $79 million for the quarter Condensed Consolidated Cash Flow Data (in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Net cash provided by operating activities | $639 | $419 | | Net cash used in investing activities | $(1,149) | $(261) | | Net cash provided by/(used in) financing activities | $590 | $(273) | | **Net increase/(decrease) in cash and cash equivalents** | **$79** | **$(119)** | - The Q1 2025 investing activities include a net cash outflow of **$624 million** for bolt-on acquisitions[28](index=28&type=chunk) Capital Expenditures (Consolidated, in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Investment capital expenditures | $161 | $104 | | Maintenance capital expenditures | $41 | $57 | | **Total** | **$202** | **$161** | [Operating Data by Segment](index=15&type=section&id=OPERATING%20DATA%20BY%20SEGMENT) In Q1 2025, total crude oil pipeline tariff volumes increased to 9,086 MBbls/d from 8,600 MBbls/d year-over-year, driven primarily by a 7% volume growth in the Permian Basin. NGL segment volumes also saw broad increases, with NGL fractionation volumes up 23% and pipeline tariff volumes up 9% compared to the prior year Average Daily Volumes by Segment (in thousands of barrels per day) | Segment Volumes | Q1 2025 (MBbls/d) | Q1 2024 (MBbls/d) | | :--- | :--- | :--- | | **Crude Oil** | | | | Permian Basin | 6,869 | 6,428 | | Total crude oil pipeline tariff | 9,086 | 8,600 | | **NGL** | | | | NGL fractionation | 157 | 128 | | NGL pipeline tariff | 234 | 214 | | Propane and butane sales | 147 | 128 | [Non-GAAP Reconciliations](index=3&type=section&id=NON-GAAP%20RECONCILIATIONS) This section provides an overview of Plains All American's non-GAAP financial measures, including detailed reconciliations of Net Income to Adjusted EBITDA and Implied DCF, and Net Cash from Operations to Adjusted Free Cash Flow, along with selected items impacting comparability [Non-GAAP Financial Measures Overview](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Selected%20Items%20Impacting%20Comparability) Management uses non-GAAP measures such as Adjusted EBITDA, Implied Distributable Cash Flow (DCF), and Adjusted Free Cash Flow to evaluate performance, assess cash availability for distributions, and provide investors with their analytical framework. These measures adjust for certain items, such as derivative gains/losses and transaction expenses, to better reflect core operating performance and liquidity - Management uses non-GAAP financial measures to evaluate past performance, future prospects, and assess the amount of cash available for distributions, debt repayments, and other purposes[14](index=14&type=chunk) - Primary non-GAAP measures include **Adjusted EBITDA**, **Implied DCF**, and **Adjusted Free Cash Flow**. These measures are adjusted for "selected items impacting comparability" to provide a clearer view of core operating performance[14](index=14&type=chunk)[18](index=18&type=chunk) - The company does not reconcile forward-looking non-GAAP financial measures as it is impractical to do so without unreasonable effort[15](index=15&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA and Implied DCF](index=10&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA%20attributable%20to%20PAA%20and%20Implied%20DCF%20Reconciliation) This reconciliation shows the adjustments made to Net Income to arrive at key non-GAAP metrics. For Q1 2025, Net Income of $516 million was reconciled to an Adjusted EBITDA of $881 million. After accounting for noncontrolling interests, Adjusted EBITDA attributable to PAA was $754 million. Implied DCF was $526 million, resulting in a strong common unit distribution coverage ratio of 1.73x Q1 2025 Reconciliation Summary (in millions) | Metric | Value (million) | | :--- | :--- | | Net income | $516 | | Adjusted EBITDA | $881 | | Adjusted EBITDA attributable to PAA | $754 | | Implied DCF | $526 | | Implied DCF Available to Common Unitholders | $462 | | Common Unit Distribution Coverage Ratio | 1.73x | [Reconciliation of Net Cash from Operations to Adjusted Free Cash Flow](index=12&type=section&id=Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Non-GAAP%20Financial%20Liquidity%20Measures%20Reconciliation) This section details the conversion from GAAP's Net Cash Provided by Operating Activities to the non-GAAP measure of Adjusted Free Cash Flow. In Q1 2025, Net Cash Provided by Operating Activities of $639 million was adjusted for investing activities and other items, resulting in an Adjusted Free Cash Flow of negative $308 million. After accounting for $331 million in distributions, Adjusted Free Cash Flow after Distributions was negative $639 million, heavily impacted by acquisitions Q1 2025 Free Cash Flow Reconciliation (in millions) | Metric | Value (million) | | :--- | :--- | | Net cash provided by operating activities | $639 | | Net cash used in investing activities | $(1,149) | | **Adjusted Free Cash Flow** | **$(308)** | | Cash distributions | $(331) | | **Adjusted Free Cash Flow after Distributions** | **$(639)** | - The 2025 period includes a net cash outflow of **$624 million** for bolt-on acquisitions, which is a primary driver for the negative Adjusted Free Cash Flow[35](index=35&type=chunk) [Selected Items Impacting Comparability](index=13&type=section&id=SELECTED%20ITEMS%20IMPACTING%20COMPARABILITY) This section details specific adjustments made to GAAP figures to arrive at non-GAAP metrics. For Q1 2025, major adjustments included a $34 million positive impact from derivative activities and inventory valuation adjustments, and a $5 million expense for transaction-related costs. The aggregate of these items resulted in a $68 million positive adjustment to derive Adjusted Net Income Attributable to PAA Selected Items Impacting Comparability (in millions) | Item | Q1 2025 (million) | Q1 2024 (million) | | :--- | :--- | :--- | | Derivative activities and inventory valuation adjustments | $34 | $(159) | | Long-term inventory costing adjustments | $3 | $33 | | Deficiencies under minimum volume commitments, net | $7 | $12 | | Transaction-related expenses | $(5) | — | | **Selected items impacting comparability - Adjusted EBITDA** | **$30** | **$(114)** | | **Selected items impacting comparability - Adjusted net income attributable to PAA** | **$68** | **$(88)** | - Key adjustments include gains/losses from derivative activities not in an accounting hedge relationship, changes in the cost of long-term inventory, and revenue from minimum volume commitments[37](index=37&type=chunk) [Plains GP Holdings (PAGP) Information](index=17&type=section&id=PLAINS%20GP%20HOLDINGS%20AND%20SUBSIDIARIES) This section details Plains GP Holdings' (PAGP) role as the controlling entity of PAA, outlining its consolidation of PAA's financial results and reporting its net income attributable to shareholders [PAGP Overview and Financials](index=17&type=section&id=PAGP%20Overview%20and%20Financials) Plains GP Holdings (PAGP), which holds a non-economic controlling interest in PAA, consolidates PAA's results into its financial statements. For Q1 2025, PAGP reported net income attributable to its shareholders of $84 million, or $0.42 per Class A share. This represents a 100% increase from the $42 million, or $0.21 per share, reported in the prior-year quarter - PAGP owns an indirect non-economic controlling interest in PAA's general partner and an indirect limited partner interest in PAA, and as the control entity, it consolidates PAA's results[11](index=11&type=chunk) PAGP Net Income per Class A Share | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Net income attributable to PAGP | $84 | $42 | | Basic and diluted net income per Class A share | $0.42 | $0.21 | - The consolidating financial statements for PAGP show the adjustments necessary to reflect its controlling interest in PAA, including adjustments to net income and partners' capital[44](index=44&type=chunk)[46](index=46&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section provides important disclosures regarding forward-looking statements, outlining potential risks and uncertainties, and offers a general overview of Plains All American's business and operational scope [Forward-Looking Statements](index=19&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements that are subject to numerous risks and uncertainties which could cause actual results to differ materially from expectations. Key risks cited include general economic conditions, crude oil price volatility, demand for midstream services, competition, regulatory changes, operational hazards, and the ability to consummate strategic opportunities - The report's forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated[48](index=48&type=chunk) - Identified risks include, but are not limited to: General economic conditions, inflation, and demand for crude oil and NGLs; Fluctuations in crude oil prices and North American production levels; Competition and capacity overbuild in operating areas; Environmental liabilities and regulatory changes; The ability to consummate acquisitions and realize benefits; Counterparty performance and credit risk[50](index=50&type=chunk)[52](index=52&type=chunk) [About Plains All American](index=21&type=section&id=About%20Plains) Plains All American (PAA) is a publicly traded master limited partnership that owns and operates a large network of midstream energy infrastructure for crude oil and natural gas liquids (NGLs) in the U.S. and Canada. On average, PAA handles over 8 million barrels per day. PAGP is the publicly traded entity that owns a controlling general partner interest in PAA - PAA is a master limited partnership with an extensive network of pipeline, terminalling, storage, and processing assets for crude oil and NGLs in key US and Canadian producing basins and market hubs[53](index=53&type=chunk) - PAGP is a publicly traded entity that holds an indirect, non-economic controlling general partner interest and an indirect limited partner interest in PAA[54](index=54&type=chunk)

1Q25 Earnings Call May 9, 2025 Forward-Looking Statements & Non-GAAP Financial Measures Disclosure Investor Relations Contacts Blake Fernandez Vice President, Investor Relations Blake.Fernandez@plains.com Michael Gladstein Director, Investor Relations Michael.Gladstein@plains.com Investor Relations 866-809-1291 plainsIR@plains.com 2 ▪ This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations of Pl ...